UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Registered Charity No. 1083226
UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
CONSTITUTION
The United Mission to Nepal Hospitals’ Endowment Trust was established by a Declaration of Trust on 20 September 2000 and registered with the Charity Commission on 7 November 2000.
TRUSTEES
The Trustees during the financial year ending 31 December 2022 and up to the date of the signing of this Trustees’ report were the following:
Dr Anthony Cleve Chevassut (Chair) Dr Katrina Butterworth Mr Ian Chadwell Mrs Alison Chevassut Dr Olak Jirel Dr Gary Parkes Dr David Rodgers Mr Timothy Trimble (Treasurer)
REGISTERED OFFICE:
Langtang Berry Lane East Hanney Wantage OX12 0JB
BANKERS: CAF Bank Ltd 25 Kings Hill Avenue Kings Hill, West Malling ME19 4JQ INVESTMENT ADVISORS: CCLA Senator House 85 Queen Victoria Street London EC4V 4ET St James’s Place Wealth Management plc St James’s Place House 1 Tetbury Road Cirencester GL1 1FP
UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
| INDEX | Page |
|---|---|
| REPORT OF THE TRUSTEES | 1 - 4 |
| INDEPENDENT EXAMINER’S REPORT | 5 - 6 |
| STATEMENT OF FINANCIAL ACTIVITIES | 7 |
| BALANCE SHEET | 8 |
| NOTES TO THE FINANCIAL STATEMENTS | 9 - 11 |
UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
ABOUT THE UNITED MISSION TO NEPAL HOSPITAL ENDOWMENTS TRUST
The United Mission to Nepal (UMN) first established health work in Nepal in 1954 with a maternity clinic in Bhaktapur and a hospital in Kathmandu was opened a month later. This was to become Shanta Bhawan Hospital, evolving in 1982 into Patan Hospital. 1954 also saw the start of medical work in Tansen and by 1957 a school and a dispensary were established in Amp Pipal. By 1959 a dispensary had been established in Okhaldhunga, from which Okhaldhunga Community Hospital evolved. Other Community Health programmes were also started, and the UMN to this day continues to be a major contributor to health care.
However, the UMN vision was to develop educate and eventually empower local communities to play a much larger part in the general management of its hospitals, and now both Patan Hospital and Amp Pipal Hospital have achieved that independence. The desire to continue the impartial and, where necessary subsidised, care to all who come for help regardless of status, caste, creed or resources is intended to remain integral to their work, whether under the UMN umbrella or under local management.
Nepal has a population of approximately 27 million, and it is estimated that 45% of its people earn less than £1 per day. Nothing akin to our NHS exists in the country, so there is a great need for the funding of subsidised and charitable care. Recent turbulent times in Nepal have added to the increasing requests for assistance.
In 2000 the United Mission to Nepal Hospitals’ Endowment Trust (UMNHET) was set up to support financially the ‘free care for the poor’ Medical Assistance Fund in each of the four hospitals that began under the UMN umbrella. The endowment fund is not separately managed for each hospital but managed by the Trustees for the mutual benefit of each hospital. Funds are allocated by the Trustees for the benefit of each hospital and any gifts received are added to these funds as according to the donor’s wishes.
The endowment is invested with two investment managers who also advise the Trustees on detailed investment decisions. Interest received on the capital that is invested is paid each year to the four hospitals. Interest generated by the capital fund is usually paid to each hospital in proportion to the capital allocated to each hospital. Interest generated by the General fund is distributed each year in full according to the hospitals requirements and needs and may be distributed to other health care providers that have close links with the hospitals. The final decision on distribution is taken by the Trustees following a discussion based upon the needs and requirements expressed to the Trustees by the management of each hospital.
Grants are sent twice a year and are always received with much gratitude.
UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
ANNUAL REPORT OF THE TRUSTEES
Background
This is our twentieth Annual Report, representing events and progress for the period of 1[st] January 2022 through to 31[st] December 2022.
Trustees
During 2022, the Trustees who served were Dr Cleve Chevassut, Dr Olak Jirel, Dr Gary Parkes, Mr Timothy Trimble, Mrs Alison Chevassut, Dr Katrina Butterworth, Mr Ian Chadwell and Dr David Rodgers. All the Trustees have had, or continue to have, experience working in Nepal, under the auspices of The United Mission to Nepal (UMN).
The Trustees collectively represent many years of service in Nepal and bring a wealth of knowledge and expertise to the running of the Trust. I am extremely grateful to all the Trustees for their hard work and willingness to serve the Trust over this past year.
In July 2022 Dr Olak Jirel retired from his long service with the United Mission to Nepal, having served for many years in Tansen Hospital, Patan Hospital, and latterly as the Hospital Services Director in the UMN Hospital Services Office in Kathmandu. To coincide with his retirement, Olak submitted his resignation as a UMNHET Trustee. He was warmly thanked for many years of faithful service.
Activities
The Trustees met for the Annual General Meeting on 25[th] June 2022, which was held via zoom. The AGM was attended by seven of our eight Trustees. Dr Olak Jirel, who lives in Nepal, was unable to attend due to the time difference between the UK and Nepal. The meeting provided a good opportunity to discuss the ongoing work of the Trust, receive updated information on our current financial situation, hear news from the hospitals supported by the Trust, and discuss recent news from Nepal.
During 2022, Dr David Rodgers also continued in his role as a Board Member for the United Mission to Nepal and is currently the Board Chairman.
Special thanks go to Tim Trimble, our Treasurer, for his detailed work on our finances, to Alison Chevassut, our Secretary, for writing thank-you letters to our donors and keeping in touch with our hospitals in Nepal, and to Katrina Butterworth for writing our Annual Newsletter. We are also very indebted to Ian Linehan, a friend of UMNHET, who has constructed and managed our website so capably for many years.
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Developments in Nepal
Nepal started 2022 with a spike in COVID-19 cases. The government had imposed strict restrictions to mitigate the effects of the third wave. On 18 January 2022, Nepal recorded the highest number of single-day infections, with 11,352 reported cases in 24 hours, owing to the highly infectious Omicron variant. By mid-February, cases had decreased considerably, and schools were reopened. By the end of the year 2022, Nepal finally recorded zero COVID-19 cases for the first time in 31 months.
The COVID-19 pandemic and the ongoing Russian-Ukrainian war have led to economic difficulties for Nepal, as for many other countries in the world. In 2022 Nepal held its second elections at all levels of government since the enactment of the Nepalese Constitution in 2015. The government was formed by a seven-party coalition, and Pushpa Kamal Dahal (Prachanda) was sworn in as the new Prime Minister of Nepal on 26 December 2022.
Nepal remains one of the world’s poorest countries and according to The International Monetary Fund, in 2023, Nepal ranked 150[th] out of 192 countries with a GDP per capita of USD 5,101 (by comparison: UK = USD 56,471; USA = USD 80,035). Of course, this average figure does not tell the true story for many in the country who live in abject poverty.
The four UMN-founded hospitals continue to serve the people of Nepal, with a special focus on the poor and marginalised. We commend the hard work and dedication of so many staff in these institutions, especially during the COVID-19 pandemic.
The two UMN hospitals, Tansen and Okhaldhunga are now being managed by the United Mission to Nepal Medical and Development Trust (UMNMDT), and these hospitals now have to be registered with the respective provincial government. Patan and Amp Pipal Hospitals continue under their own governance structure, which is independent of UMN.
The COVID-19 pandemic created many new challenges for the UMN-founded hospitals, as they sought to continue caring for patients. The lack of patients accessing the hospital in the early days of the pandemic lead to a significant fall in hospital revenue, and there were great concerns about how to pay staff salaries and keep the hospitals running, but thankfully they succeeded in doing both. The UMN “Save Our Hospitals” appeal undoubtedly assisted greatly in this, and it was a privilege for UMNHET to act as a channel for donors who wished to contribute to this appeal. The Trustees also decided to make our grants to the hospitals as a single early donation, rather than in two instalments, in order to assist with cash-flow.
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Financial Situation
The Trustees continue to be immensely grateful to our many donors for the gifts given to the Trust. This shows the ongoing commitment of many long-term friends to the work of the Trust. In 2023 the Trust was able to make grants to the four UMN founded hospitals, and allied organisations, of £31,456, being interest and dividends received from investments during the previous year. Since the Trust started making grants in 2005 it has paid out £596,322 from its endowment funds and £40,629 from direct appeals.
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Gift aid of £1,206 (2021 £1,489) was receivable during the year.
The results for the year and the state of affairs as at 31 December 2022 are shown on pages 7 and 8 respectively.
Investment Policy
The market value of investments held at 31 December 2022 was £738,093 (2021 £846,667) made up of £483,562 invested with St James’s Place and £254,531 invested with CCLA as shown in note 2 to the accounts.
St James’s Place managed funds are invested in a portfolio consisting about 63% (2021 63%) fixed interest bonds with the balance invested in equities, other investments and cash. COIF Charities Fixed Interest Fund - Income Units are invested in fixed interest securities of which about 55% (2021 38%) are Government Bonds, the balance is invested in non government bonds and cash.
As funds are invested only for income generation the Trustees consider it more informative to value investments at cost. The market values of investments held are disclosed in note 2 to the accounts.
We meet our investment fund managers regularly to ensure our investment funds meet the Trustees’ ethical concerns and provide income in preference to capital growth. During 2022 the income from investments was £31,456 (2021 £31,960).
Reserves Policy
Funds invested generate interest and dividends which is paid out in full the following financial year. The Trustees consider no benefit in holding undesignated free reserves.
Risk Assessment
At the AGM the Trustees reviewed an assessment of the risks to which the charity is exposed. The main risks are loss of investment income due to poor results from investment managers and ensuring that interest is used by the beneficiary hospitals for the purpose for which it is given.
Future Plans
The Trustees will continue in 2023 to raise further funds and distribute income received as mandated by the governing document.
Responsibilities of the Trustees
The law applicable to charities in England and Wales requires the Trustees to prepare the annual report and financial statements for each financial year, which give a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including its income and expenditure. In preparing these financial statements, the Trustees should follow best practice and:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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ensure that the best accounting practice has been followed, subject to any material departures disclosed and explained in the financial statements;
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and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Trust and enable preparation of the financial statements complying with the Charities Act 2011.
The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Further information can be obtained from the website www.umnhet.org.uk
Approved by the Trustees and signed on their behalf by:
Dr Cleve Chevassut 17 June 2023
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UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
Independent Examiner’s report to the trustees of United Mission to Nepal Hospitals’ Endowment Trust.
I report on the accounts of the Trust for the year ended 31 December 2022, which are set out on the following pages.
Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) or under Regulation 10(1)(a) to (c) of the Charities Accounts (Scotland) Regulations 2006 (the 2006 Regulations) and that an independent examination is needed. The charity is preparing accrued accounts and I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act 2011 and under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act)
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to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act
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to state whether particular matters have come to my attention
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
(1) which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with section 130 of the 2011 Act and section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act and section 44(1)(b) of the 2005 Act and Regulation 8 of the 2006 Accounts Regulations
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have not been met or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached
Signed:
John Hedderley
Chartered Certified Accountant
Grove, Wantage
Date: 18 June 2023
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UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
Statement of Financial Activities
For the Year Ended 31 December 2022
| Income Donations Trusts and foundations Individual donors Gift aid on donations Total Donations Investment Income CCLA managed funds St James’s Place managed funds Total Investment income Total income Grants payable to Beneficiaries Support costs Total Expenditure Net movement in funds for year Reconciliation of funds Total funds brought forward Total funds carried forward |
Hospital Funds General Fund Total 2022 Hospital Funds General Fund Total 2021 £ £ £ £ £ £ 2,500 - 2,500 2,500 - 2,500 11,641 700 12,341 10,084 700 10,784 - 1,206 1,206 - 1,489 1,489 |
|---|---|
| 14,141 1,906 16,047 12,584 2,189 14,773 |
|
| 4,326 2,623 6,949 4,872 3,017 7,889 15,256 9,251 24,507 14,866 9,205 24,071 |
|
| 19,582 11,874 31,456 19,738 12,222 31,960 |
|
| 33,723 13,780 47,452 32,322 14,411 46,733 |
|
| 19,582 11,874 31,456 19,738 12,222 31,960 100 81 181 80 141 221 |
|
| 19,682 11,955 31,637 19,818 12,363 **32,181 ** |
|
| 14,041 1,825 15,866 12,504 2,048 14,552 523,794 324,321 848,115 511,290 322,273 833,563 |
|
| 537,835 326,146 863,981 523,794 324,321 848,115 |
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UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
Balance Sheet as at 31 December 2022
| Notes Current assets Investments at cost CCLA managed funds 2 St James’s Place managed funds 2 Cash at bank Current account – CAF Bank Deposit account – CAF Bank/CCLA Debtors 4th Quarter interest on St James’s Place 4th Quarter interest on CCLA Gift Aid Current Liabilities Creditors- less than one year Hospital funds 4 General funds 4 Net current assets/Liabilities Fund Balances 3 |
2022 £ 291,446 556,671 848,117 13,818 24,088 37,906 6,740 1,468 1,206 9,414 19,582 11,874 31,456 863,981 863,981 |
2021 £ 291,446 556,671 |
|---|---|---|
| 848,117 18,984 3,038 |
||
| 22,022 6,475 1,972 1,489 |
||
| 9,936 19,738 12,222 |
||
| 31,960 848,115 |
||
| 848,115 |
These financial statements have been prepared in accordance with the Financial Reporting Standard 102 SORP.
The Financial Statements were approved by the Board of Trustees on 17 June 2023 and signed on their behalf by Dr Cleve Chevassut Chair of Trustees;
…………………………………………………………………………………………………………
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UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
Notes to the Accounts
Note 1 - Accounting policies
a) Basis of accounting
(i) The financial statements have been prepared under the historical cost convention in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice and the Charities Act 2011.
b) Incoming Resources
Grants, donations and conference fees are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
c) Resources expended
All expenditure is accounted for on an accruals basis when there is a legal or constructive obligation to do so.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and represent the associated costs of finance and general administration in supporting the operational programmes for which the charity is responsible.
Governance costs include the cost of the governance arrangements which relate to the general running of the charity as opposed to the direct management functions inherent in generating funds, service delivery and programme or project work. This includes such items as Independent Examiner’s fees, legal advice for trustees and costs associated with constitutional and statutory requirements.
d) Fund accounting
The Charity maintains various types of fund as follows:
Hospital funds - these represent grants and donations which are allocated to specific hospitals based on the wishes of the donor.
Unrestricted funds - these represent funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the charity.
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UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022
Notes to the Accounts
| Note 2 Investments 2022 CCLA St James’s Total CCLA Investments at cost £ £ £ £ 1 January 291,446 556,671 848,117 291,446 Additions - - - - 31 December 291,446 556,671 848,117 291,446 Investments at market value £ £ £ £ 1 January 290,961 555,706 846,667 311,456 Added - - - - Unrealised gains/(loss) (36,430) (72,144) (108,574) (20,495) 31 December 254,531 483,562 738,093 290,961 |
2022 CCLA St James’s Total CCLA £ £ £ £ 291,446 556,671 848,117 291,446 - - - - |
St James’s £ 531,671 25,000 |
2021 Total £ 823,117 25,000 848,117 £ 830,063 25,000 (8,396) 846,667 |
|---|---|---|---|
| 291,446 556,671 848,117 291,446 |
556,671 | ||
| £ 518,607 25,000 12,099 |
|||
| 254,531 483,562 738,093 290,961 |
555,706 | ||
| Note 3 Fund Balances (Capital) Amp Pipal Okhaldh -unga Tansen Patan £ £ £ £ Opening Balances 148,838 105,699 179,134 90,123 Donations received 3,318 3,318 4,688 2,817 Gift Aid received - - - - Expenditure- bank charges 25 25 25 25 Closing Balances 152,131 108,992 183,797 92,915 18% 12% 21% 11% Summary of Capital Fund balances 2022 2021 £ £ Hospital Funds 537,835 523,794 General 326,146 324,321 Total Funds 863,981 848,115 |
Total Hospitals £ 523,794 14,141 - 100 537,835 62% |
General Fund £ 324,321 700 1,206 81 |
|
| 326,146 | |||
| 38% |
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UNITED MISSION TO NEPAL HOSPITALS’ ENDOWMENT TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2022 Notes to the Accounts
Note 4
| Note 4 | |||||||
|---|---|---|---|---|---|---|---|
| Funds payable | Amp Pipal |
Okhaldh -unga |
Tansen | Patan | Total Hospitals |
General Fund |
Total |
| £ | £ | £ | £ | £ | £ | £ | |
| Opening Balances 1 Jan | 5,608 | 3,983 | 6,749 | 3,396 | 19,738 | 12,222 | 31,960 |
| Grants paid in year | 5,608 | 3,983 | 6,749 | 3,396 | 19,738 | 12,222 | 31,960 |
| St James’s Place | 4,315 | 3,092 | 5,213 | 2,636 | 15,256 | 9,251 | 24,507 |
| CCLA | 1,223 | 877 | 1,478 | 747 | 4,326 | 2,623 | 6,949 |
| Balance payable in 2023 | 5,528 | 3,969 | 6,691 | 3,383 | 19,582 | 11,874 | 31,456 |
| Summary of funds payable in following year | |||||||
| 2022 | 2021 | ||||||
| £ | £ | ||||||
| Hospital funds | 19,582 | 19,738 | |||||
| General | 11,874 | 12,222 | |||||
| Total Funds payable | 31,456 | 31,960 |
Note 5. Related Party Disclosure
During the year £10,246 was paid to United Mission Hospital, Tansen and £6,046 was paid to Okhaldhunga Community Hospital both projects of United Mission to Nepal of which Dr David Rodgers is a Trustee. United Mission to Nepal works in Nepal under a General agreement and Project agreement with the Social Welfare Council of the Government of Nepal. The Trustees were in full agreement that these transfers were in accordance with the objects of the Trust.
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